Pressure is mounting on the Federal government to extend the repayment deadline for loans paid out under the Canada Emergency Business Account (CEBA).
Small businesses and not-for-profits were eligible for up to $60,000 in funding to help with added expenses and pressures faced during the COVID pandemic.
The government approved nearly 900,000 CEBA loans, including in the retail and tourism sectors.
As of now, the deadline to pay the money back is at the end of 2023. If the balance is repaid by then, one third of the loan will be forgiven.
The Sarnia-Lambton Chamber of Commerce has joined more than 250 organizations across Canada in asking for the deadline to be extended by two years, or by one year while maintaining access to the forgivable portion.
CEO Carrie McEachran said the money, issued up until the end of June 2021, went a long way toward assisting organizations with added expenses.
"It's absolutely helped," said McEachran. "With everything that businesses have been going through over the past two to three years, including inflation and labour shortages, this benefit has been very helpful."
McEachran said the Chamber has been getting phone calls from concerned members on a regular basis.
"They're concerned that the repayment deadline is coming up so quickly and so soon after COVID," she said. "Many businesses are still really trying to just keep their heads above water. They're still not to the level that they were pre-COVID. So, we're really hoping the government will consider another year or two for that repayment to happen."
According to a recent survey by the Canadian Chamber of Commerce, inflation, input costs, and interest/debt costs are the three most acute obstacles faced by business.
They found that 49 per cent of loan-holder companies are still making below normal revenues, and 50 per cent of Canadian foodservice operators are currently operating at a loss or breaking even compared to 12 per cent pre-pandemic.
The poll also concluded that 45 per cent of Canada's tourism businesses are likely or somewhat likely to close within the next three years without government intervention into their mounting debt load.
McEachran said a letter has also been sent to MP Marilyn Gladu's office on the matter.
She said they're hoping to receive a response from the Federal government sooner than later.